Public Employees

Florida House Panel OKs Closing Pension to New Public Employee Hires

Published: Thursday, February 7, 2013 at 11:59 p.m.

Last Modified: Thursday, February 7, 2013 at 11:59 p.m.

TALLAHASSEE | The traditional state pension plan no longer would be available to new public employees beginning next January under a bill approved Thursday by a House committee.

Employees hired after January 2014 by the state, school boards, county governments and other entities that use the state pension system would be enrolled in a 401(k)-style investment plan, which is now offered as an alternative pension plan.

The bill — a priority for House Speaker Will Weatherford, R-Wesley Chapel — cleared the Government Operations Subcommittee more than three hours of debate and testimony from public employees opposed to the changes.

Acknowledging that Florida has a strongly funded pension plan now, committee chairman Rep. Jason Brodeur, R-Sanford, said the prospective change is necessary for Florida to avoid problems other public and private pension funds have encountered.

"We know that if we address this now and make minimal changes, it will stop us from having to make bigger changes later," Brodeur said. "It doesn't hurt anyone currently in the system."

But Brodeur also said the bill is subject to revision.

One of the biggest complaints is that lawmakers were proceeding without an actuarial study detailing how much the pension changes may cost.

There is expected to be significant impact as the $128 billion fund is closed to new workers and their contributions, while continuing to have to pay for the eventual retirement of the 623,000 active employees currently in the plan.

"This is kind of ridiculous if we don't have the numbers," said Rep. Irv Slosberg, D-Boca Raton.

"Why would we pass out legislation before we have any numbers?"

Brodeur said the House is scheduled to receive an actuarial study on the changes by Feb. 15.

Ron Silver, a lobbyist for the Teamsters who represent correctional officers, said an excessive cost for closing pension fund could jeopardize retirement benefits for the future retirees.

"It's going to have an effect," said Silver, a former state senator. "It's going to have an adverse effect."

Slosberg clashed with officials from the state Division of Retirement when he repeatedly asked them to make a rough estimate on the cost of the changes.

He accused them of "stonewalling" on the issue.

Slosberg was also one of three Democrats who opposed the bill, saying it was premature, unnecessary and would hurt public employees.

"Go find somebody else's pocket to pick," he said.

Several Republicans said they were voting for the bill but still had questions about its impact, including whether disability payments would end for newly hired workers if they were hurt on the job after January 2014.

"I will support this," said Rep. Frank Artiles, R-Miami. "The caveat is I want answers to these very important questions."

<p>TALLAHASSEE | The traditional state pension plan no longer would be available to new public employees beginning next January under a bill approved Thursday by a House committee.</p><p>Employees hired after January 2014 by the state, school boards, county governments and other entities that use the state pension system would be enrolled in a 401(k)-style investment plan, which is now offered as an alternative pension plan.</p><p>The bill — a priority for House Speaker Will Weatherford, R-Wesley Chapel — cleared the Government Operations Subcommittee more than three hours of debate and testimony from public employees opposed to the changes.</p><p>Acknowledging that Florida has a strongly funded pension plan now, committee chairman Rep. Jason Brodeur, R-Sanford, said the prospective change is necessary for Florida to avoid problems other public and private pension funds have encountered.</p><p>"We know that if we address this now and make minimal changes, it will stop us from having to make bigger changes later," Brodeur said. "It doesn't hurt anyone currently in the system."</p><p>But Brodeur also said the bill is subject to revision.</p><p>One of the biggest complaints is that lawmakers were proceeding without an actuarial study detailing how much the pension changes may cost.</p><p>There is expected to be significant impact as the $128 billion fund is closed to new workers and their contributions, while continuing to have to pay for the eventual retirement of the 623,000 active employees currently in the plan.</p><p>"This is kind of ridiculous if we don't have the numbers," said Rep. Irv Slosberg, D-Boca Raton.</p><p>"Why would we pass out legislation before we have any numbers?"</p><p>Brodeur said the House is scheduled to receive an actuarial study on the changes by Feb. 15.</p><p>Ron Silver, a lobbyist for the Teamsters who represent correctional officers, said an excessive cost for closing pension fund could jeopardize retirement benefits for the future retirees.</p><p>"It's going to have an effect," said Silver, a former state senator. "It's going to have an adverse effect."</p><p>Slosberg clashed with officials from the state Division of Retirement when he repeatedly asked them to make a rough estimate on the cost of the changes.</p><p>He accused them of "stonewalling" on the issue.</p><p>Slosberg was also one of three Democrats who opposed the bill, saying it was premature, unnecessary and would hurt public employees.</p><p>"Go find somebody else's pocket to pick," he said.</p><p>Several Republicans said they were voting for the bill but still had questions about its impact, including whether disability payments would end for newly hired workers if they were hurt on the job after January 2014.</p><p>"I will support this," said Rep. Frank Artiles, R-Miami. "The caveat is I want answers to these very important questions."</p>